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We Need Jobs Now

Employment numbers for April were released on May 7. The news is mixed.

  • Unemployment (numbers filing for unemployment benefits) rose to 9.9% from the 9.7% which had held for at least two months. The uptick is due to greater confidence, encouraging those who had ceased looking for work to rejoin the search.
  • 290,000 new non-farm payroll jobs were created in April, across several sectors of the market, including manufacturing.

The American Recovery and Reinvestment Act of 2009 (also known as ARRA or economic stimulus), which helped to hold the jobless rate below 10% for the last several months, will cease to be available at the end of this fiscal year, Oct. 31, 2010. Millions of jobs are needed.


Unemployment Insurance


More than half those unemployed have been so for more than six months. This is the first recession in our history in which this has been the case. Unemployment benefits have been extended twice, and are now up to 99 weeks. Still, there are thousands of workers who have exceeded that limit. Legislation supporting the 99 weeks of benefits expires at the beginning of June 2010, and thousands of additional families will be without income unless there is a further extension. With each short-term (1-2 month) extension, states need to spend money they do not have for notices, changes in status, etc. The Continuing Extension Act of 2010 (H.R. 4851) would postpone the termination until November 6 – in the new fiscal year. It awaits Senate action.


Signed into Law


To date, the only “jobs bill” signed into law is the "Hiring Incentives to Restore Employment Act" (H.I.R.E. - H.R. 2847), which was signed by the president on March 18, 2010. It focuses on small businesses as a way to cure the employment crisis, and does so through a series of tax incentives.


Waiting in the Senate


“Emergency Supplemental for Disaster Relief and Summer Jobs for Youth, ending 9/30/2010” (H.R. 4899) is one of several job-promotion bills passed by the House and sent to the Senate. It has been sent to the Senate Appropriations Committee, and is awaiting action there prior to going to the Senate floor. If this doesn’t receive action before the Memorial Day recess, there will be little use in passing the Summer Jobs for Youth section.


H.R. 4849 “Small Business and Infrastructure Jobs Tax Act of 2010” includes tax breaks for small businesses and for capital gains, and a one-year extension ($25 billion) of the Temporary Assistance for Needy Families Emergency Fund – which has provided thousands of jobs for recipients of TANF over the last several months.


Waiting for House/Senate Agreement


The American Workers, State, and Business Relief Act of 2010 (H.R. 4213) has been passed in both the House and the Senate. They differ, however, and await reconciling.


At this time, the bill is predominantly tax credits that expired at the end of 2009, including research and development, state sales tax deductions, and some which are energy related.


Advocates are working to extend successful ARRA provisions, otherwise expiring this year:

  • Extension of Unemployment Insurance and COBRA until the end of 2010
  • TANF Emergency Fund – is successfully placing 180,000 persons in jobs with a future
  • Summer jobs for youth – provided jobs for 317,000 young people in 2009
  • Federal Medical Assistance Percentage (FMAP) – assists states with their portion of Medicaid expenses – this will keep state workers employed. 
  • Emergency funding (traditionally) has not required “pay-fors.” However, many mem